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2 November 2015
Netcracker Technology Corp. and Computer Sciences Corp. Agree to Settle Civil False Claims Act AllegationsRead the Press Release
NetCracker Technology Corp. has agreed to pay $11.4 million and Computer Sciences Corp. (CSC) has agreed to pay $1.35 million to resolve allegations under the False Claims Act that they used individuals without security clearances on a Defense Information Systems Agency (DISA) contract, the Justice Department announced today. NetCracker is a telecom software and services company headquartered in Waltham, Massachusetts, and CSC is an information technology services company with its headquarters in Falls Church, Virginia.
“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that the government receives what it pays for when federal monies are used to purchase services.”
“Companies that do business with the federal government have a responsibility to fully meet the terms of their contracts,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “In addition to holding these two companies accountable for their contracting obligations, this settlement shows that the U.S. Attorney’s Office will take appropriate measures necessary to ensure the integrity of government communications systems.”
“This NetCracker case is a prime example of how the DISA IG works to detect and prevent fraud schemes within the Agency and recuperate funds for the U.S. government,” said Colonel Bill Eger, Inspector General (IG) of DISA.
NetCracker and CSC implemented software used to help manage the telecommunications network used by the U.S. Department of Defense. The work was done pursuant to a contract with DISA, under which CSC was the prime contractor and NetCracker was a CSC subcontractor. From 2008 through 2013, NetCracker allegedly used employees without security clearances to perform work when it knew the contract required those individuals to have security clearances, resulting in CSC recklessly submitting false claims for payment to DISA.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The civil lawsuit was filed in the District of Columbia by John Kingsley, a former NetCracker employee. Mr. Kingsley will receive $2,358,750 as his share of the recovery in this case.
This resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office of the District of Columbia, the Civil Division’s Commercial Litigation branch and the DISA IG Office.
The lawsuit is captioned United States ex rel. Kingsley v. NetCracker Technology Corp. Civil Action 1:11-cv-00629 (D.D.C.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
NetCracker Technology Corp. and Computer Sciences Corp. Agree to Settle Civil False Claims Act AllegationsRead the Press Release
WASHINGTON – NetCracker Technology Corp. has agreed to pay $11.4 million and Computer Sciences Corp. (CSC) has agreed to pay $1.35 million to resolve allegations under the False Claims Act that they used individuals without security clearances on a Defense Information Systems Agency (DISA) contract, the Justice Department announced today.
NetCracker is a telecom software and services company headquartered in Waltham, Mass., and CSC is an information technology services company headquartered in Falls Church, Va. NetCracker and CSC implemented software used to help manage the telecommunications network used by the U.S. Department of Defense. The work was done pursuant to a contract with DISA, under which CSC was the prime contractor and NetCracker was a CSC subcontractor. From 2008 through 2013, NetCracker allegedly used employees without security clearances to perform work when it knew the contract required those individuals to have security clearances, resulting in CSC recklessly submitting false claims for payment to DISA.
“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to ensure that the government receives what it pays for when federal monies are used to purchase services.”
“Companies that do business with the federal government have a responsibility to fully meet the terms of their contracts,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “In addition to holding these two companies accountable for their contracting obligations, this settlement shows that the U.S. Attorney’s Office will take appropriate measures necessary to ensure the integrity of government communications systems.”
“This NetCracker case is a prime example of how the DISA IG works to detect and prevent fraud schemes within the Agency and recuperate funds for the U.S. government,” said Colonel Bill Eger, Inspector General (IG) of DISA.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The civil lawsuit was filed in the District of Columbia by John Kingsley, a former NetCracker employee. Mr. Kingsley will receive $2,358,750 as his share of the recovery in this case.
This resolution in this matter was the result of a coordinated effort between the U.S. Attorney’s Office of the District of Columbia, the Civil Division’s Commercial Litigation branch and the DISA IG Office.
The lawsuit is captioned United States ex rel. Kingsley v. NetCracker Technology Corp. Civil Action 1:11-cv-00629 (D.D.C.). The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Navajo Man from Arizona Pleads Guilty to Federal Child Sexual Abuse Charges in New MexicoRead the Press Release
ALBUQUERQUE – Aaron Hubbard, 34, an enrolled member of the Navajo Nation who resides in Fort Defiance, Ariz., pled guilty this morning in federal court in Albuquerque, N.M., to a felony information charging him with abusive sexual contact of a minor child. Under the terms of his plea agreement, Hubbard will be sentenced to ten years in prison followed by not less than three years of supervised release. Hubbard will be required to register as a sex offender after completing his prison sentence.
Hubbard was arrested on Feb. 25, 2015, on an indictment alleging that he sexually abused the child victim from Sept. 1, 2011 through May 30, 2012, in the Navajo Indian Reservation in McKinley County, N.M.
During today’s change of plea hearing, Hubbard entered a guilty plea to an abusive sexual contact with a child charge. In entering his guilty plea, Hubbard admitted sexually molesting a Navajo child who was less than 12 years old from Sept. 1, 2011 through May 30, 2012. Hubbard committed the crime within the Navajo Indian Reservation.
Hubbard has been in the custody of the U.S. Marshals Service since his arrest and will remain detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Montana Man Sentenced to 84 Months for Unlawful Gun PossessionRead the Press Release
POCATELLO - Frank Lewis White, 55, of Great Falls, Montana, was sentenced today to 84 months in prison followed by three years of supervised release for unlawful gun possession, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered White to forfeit his interest in the firearm. White was convicted by a federal jury on August 12, 2015.
During the three-day trial, the jury heard evidence that on October 4, 2014, White was pulled over and arrested, for outstanding warrants, in Idaho Falls, Idaho. Upon being instructed to exit his car, White told officers that he had a loaded gun under his seat. According to trial testimony, the gun had been in White’s car since the day before, when White had driven another individual to a pawn shop to retrieve the gun.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Idaho Falls Police Department, and the Ada County Sheriff’s Office Laboratory.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Mexican National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAIRO JACIEL JIMENEZ-HERNANDEZ, age 29, a citizen of Mexico, was charged today in a one-count Indictment with illegal reentry of a removed alien.
According to the Indictment, JIMENEZ-HERNANDEZ reentered the United States on or about August 30, 2015, after having been previously deported on May 17, 2012. If convicted, JIMENEZ-HERNANDEZ faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Massachusettes Man Sentenced to 147 Months in Federal Prison on Drug Distribution and Firearms ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE – Acting United States Attorney Donald Feith announced that Roger Perkins, age 33, formerly of Methuen, Massachusetts, was sentenced to 147 months in federal prison for conspiracy to possess with the intent to distribute 28 grams or more of cocaine base (“crack”), possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Perkins pleaded guilty to the charges on July 21, 2015.
On March 25, 2014, the Laconia Police executed search warrants on Perkins’ vehicle and for a residence associated with Perkins. The police seized $317 cash, 42 grams of cocaine, 15.25 grams of cocaine base (“crack”), a quantity of psychedelic mushrooms, a small amount of MDMA, and a box containing 100 razor blades from Perkins’ vehicle. The search of the residence resulted in the seizure of four firearms, three of which were loaded. Police also recovered 21 grams of cocaine and 6.87 grams of cocaine base (“crack”), $1,000 cash and two digital scales from inside a safe located in a bedroom closet.
As part of his plea agreement, Perkins admitted that he conspired with Windyanne Plunkett to possess the drugs with the intent to distribute them from the residence. On July 29, 2015, Plunkett, 31, of Laconia, appeared before Judge McCafferty and pleaded guilty to the drug conspiracy charge. Plunkett is scheduled to be sentenced on January 11, 2016.
Perkins was a person prohibited from possessing firearms as a result of his December 20, 2005 felony conviction in the Belknap County Superior Court of Possession of Cocaine.
Judge McCafferty sentenced Perkins to 87 months of imprisonment for the drug trafficking and felon in possession charges. Judge McCafferty then imposed an additional mandatory consecutive sentence of 60 months of imprisonment for Perkins’ possession of firearms in furtherance of his drug trafficking.
Upon release from the Federal Bureau of Prisons, Perkins will be on supervised release under the supervision of the United States Probation Office for at least five years and as much as life. Should Perkins violate the terms of his supervised release, he could be sentenced to an additional prison term.
The investigation was conducted by the Laconia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
Los Angeles Man Convicted of Sexually Abusing Minors while in RussiaRead the Press Release
A Los Angeles man was found guilty of sexually abusing three minor girls during trips to Russia over a two-year period. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Yusef Yunosovich Abramov, 58, was convicted on Friday night after a four-day jury trial of six felony counts, including engaging in illicit sexual conduct in foreign places and traveling in foreign commerce with the intent to engage in illicit sexual conduct. He is scheduled to be sentenced on Jan. 6, 2016.
According to the evidence introduced at trial, in June 2009, Abramov, a dual Russian and U.S. citizen, flew from Los Angeles to Russia, and shortly after his arrival, he violently raped a 12-year-old girl and threatened to sever her head and play soccer with it if she told anyone about the abuse. The trial evidence showed that, in November 2009, Abramov again traveled to Russia and engaged in further sexual abuse of minor girls while there.
In addition, according to the evidence presented at trial, in March 2010, believing that local schoolgirls had contacted the police, Abramov and two accomplices cornered three minor girls. Abramov threatened all three girls while wielding a knife and each man then raped one of the girls. The evidence showed that, after threatening the girls’ lives, Abramov continued to rape at least two of the girls during his subsequent trips to Russia.
In April 2014, following an investigation by Russian and U.S. authorities, Abramov was arrested in Los Angeles. He has remained in custody since then.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, in cooperation with The Investigative Committee of the Russian Federation and the Moscow City Police. The case is being prosecuted by Trial Attorneys Maureen C. Cain and Ravi Sinha of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). The Criminal Division’s Office of International Affairs also provided assistance with this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Leader of Fraud Scheme Sentenced to 42 Months in Prison for Creating and Using Counterfeit Checks to Buy Merchandise and Gift CardsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Sheree Lanet Brown, age 36, of Washington, D.C., today to 42 months in prison, followed by three years of supervised release, for being the leader of a scheme to defraud Target by using counterfeit checks to purchase over $485,000 in gift cards and merchandise. Judge Chasanow also entered an order requiring Brown to forfeit and pay restitution of $485,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office.
According to her plea, from September 2011 to November 2013, Brown conspired with Ebony Ruffin, Nichelle Rogers, and others to use counterfeit personal checks in various aliases and false identifications to fraudulently obtain Visa gift cards and other merchandise from Target stores in Maryland, District of Columbia, Virginia, West Virginia, Pennsylvania and North Carolina. Brown was the leader of the conspiracy, as she created and printed the counterfeit checks, which she used to purchase Visa gift cards and merchandise from Target. Brown kept the amount of the fraudulent checks below $300, to avoid triggering the additional scrutiny required by Target for checks over that amount. Brown also gave counterfeit checks to Ruffin and Rogers in exchange for Visa gift cards and merchandise they fraudulently obtained by using the counterfeit checks. Brown and her co-conspirators used the gift cards to purchase gift cards and merchandise from other retailers, such as Nordstrom, later returning the merchandise for cash. Brown and her co-conspirators presented over 1,400 counterfeit checks as payment for merchandise and gift cards, resulting in a total loss to Target of at least $485,000.
For example, from October 6 through October 18, 2013, Brown and a co-conspirator presented false identification and nine counterfeit checks, totaling $2,589.85, at Target stores in Frederick, Hagerstown and Aberdeen, Maryland and in Plymouth Meeting, Pennsylvania, to purchase a total of 16 Visa gift cards and other merchandise. On October 10, 2013, Brown redeemed three of the fraudulently obtained Visa gift cards at a Nordstrom store in Columbia, Maryland, to purchase three Nordstrom gift cards totaling $300. Brown later returned the purchased merchandise at Nordstrom for cash.
Ebony Nicole Ruffin, age 29, of District Heights, Maryland, and Nichelle Nicole Rogers, age 28, of Washington, D.C., previously pleaded guilty to their participation in the scheme and were sentenced to 27 months in prison and 30 months in prison, respectively. Ruffin was also ordered to pay restitution of $485,000.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorneys Kelly O'Connell Hayes and Thomas P. Windom, who prosecuted the case.
Leader and Co-Conspirator in Baltimore Heroin Distribution Organization Plead GuiltyRead the Press Release
Baltimore, Maryland – Richard Smith, age 31, and Bruce Jeffries, age 36, both of Baltimore, Maryland each pleaded guilty today to conspiracy to distribute and possess with the intent to distribute heroin.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, beginning in at least January 2014 and continuing through December 10, 2014, Smith conspired with others to distribute heroin in Baltimore. According to Jeffries’ plea, he joined the conspiracy in August 2014. During the conspiracy, Smith and Jeffries met with co-conspirators to provide heroin for distribution by members of the conspiracy. Smith was the supervisor of this conspiracy and was responsible for providing the heroin distributed by the co-conspirators. Between September and November of 2014, law enforcement intercepted telephone conversations between Smith, Jeffries, and other conspirators. During these calls, Smith and Jeffries were heard discussing the distribution and payment for various amounts of heroin. Smith was also intercepted giving members of the conspiracy instructions regarding the distribution of narcotics. On November 14, 2014, law enforcement executed a search warrant at a “stash” house used by members of the conspiracy. During the search, law enforcement recovered 400 gel capsules of heroin from inside the stash house, along with another 100 gel capsules of heroin from a co-conspirator. This seizure precipitated intercepted phone conversations between Jeffries, Smith, and another co-conspirator regarding the seizure.
Smith and Jeffries agree that during their participation in the conspiracy, the conspirators were responsible for the distribution of between one and three kilograms of heroin. To date, 12 co-conspirators, including Smith and Jeffries, have pleaded guilty to their roles in the heroin distribution conspiracy and one defendant has been sentenced to seven years in prison. The remaining defendants are awaiting sentencing.
Smith and the government have agreed that if the Court accepts the plea agreement Smith will be sentenced to 12 years in prison. Jeffries faces a mandatory minimum of five years and a maximum of 40 years in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Smith and Jeffries on December 14 and December 15, respectively, each at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Matthew Hoff, a cross-designated Baltimore City Assistant State’s Attorney, part of the Baltimore initiative to combat violent crime, who is prosecuting the case.
Kettering Woman Sentenced for Role in Pill RingRead the Press Release
DAYTON – Amanda R. Pappert, 31, of Kettering, Ohio, was sentenced in U.S. District Court to 18 months in prison and three years of supervised release for conspiracy to possess and distribute Oxycodone.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Rocky Nelson, Director of the Ohio Organized Crime Investigations Commission, Wendell Willcox, Director, Tactical Crime Suppression Unit, Anthony Mohat, Supervising Agent in Charge, U.S. Department of Agriculture Office of Inspector General, Chicago Division, Kettering Police Chief Christopher Protsman, Centerville Police Chief Bruce Robertson and Germantown Police Chief Roy McGill, Jr. announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
The Ohio Organized Crime Investigations Commission in Attorney General DeWine’s Office investigated the case.
According to court documents, Pappert became part of a conspiracy to fabricate, falsify and forge various Dayton based physicians’ prescriptions for Oxycodone, Hydrocodone and Alprazolam. The group would fill the prescriptions at various retail pharmacies throughout the Greater Dayton area. Once obtained, the prescription drugs would thereafter be sold to various drug dealers and addicts in return for cash and illegal narcotics.
Pappert pleaded guilty on June 5 to one count of conspiracy to possess and distribute Oxycodone. She was charged by one-count bill of information on April 21. Pappert was also ordered to complete 100 hours of community service.
Co-defendants in the conspiracy include: Christian P. Fannon, Brian A. Siler, Sandy Earnstean Bryson, Elaina Marie Morocho, Mandy Marie Ernestine McGhee, Sean Aaron Ring, Justin Michael Crouch and Candice Page Crouch.
U.S. Attorney Stewart commended the cooperative investigation by the task force agencies which include the Internal Revenue Service Criminal Investigation (IRS), the U.S. Department of Agriculture Office of Inspector General – Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ohio Bureau of Criminal Investigation (BCI), the Ohio Investigative Unit, and the police departments in Centerville, Kettering, West Carrollton, Moraine and Oakwood, and the Tactical Crime Suppression Unit. He also commended Assistant U.S. Attorney Dwight Keller, who prosecuted the case.
Kenton County Man Sentenced to 200 Months for Trafficking HeroinRead the Press Release
COVINGTON — A Covington, Ky., man has been sentenced to 200 months for distributing heroin in Kenton County.
On Friday, U.S. District Judge Amul Thapar sentenced Johnny J. Shands for distribution of heroin. Shands’ criminal history qualified him as a career offender and led to an enhanced sentence. His prior convictions include weapons offenses and trafficking cocaine. Under federal law, Shands must serve at least 85 percent of his prison sentence; and following the completion of his sentence, he will be under the supervision of the U.S. Probation Office for 12 years.
According to court records, Shands sold heroin to undercover officers, on multiple occasions, in early 2015. Authorities conducted searches at multiple residences and found cash, heroin and fentanyl that belonged to Shands. Shands pled guilty in July and admitted that he distributed between 100 and 400 grams of heroin.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the FBI Safe Streets Task Force and the Covington Police Department. Assistant U.S. Attorney Tony Bracke prosecuted this case on behalf of the federal government.
Jury Convicts Bois D'Arc Man of Bank Fraud Related to $1.6 Million HomeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bois D’Arc, Mo., business owner was convicted Friday, October 30, at trial of a bank fraud scheme related to the construction of his $1.6 million residence.
Michael R. Ussery, 58, of Bois D’Arc, was found guilty of 12 counts of bank fraud in a Dec. 14, 2011, federal indictment.
Ussery was the owner/operator of two businesses in 2007, USS Properties and Villa Properties, both of which purchased real estate for residential development. During this time, Ussery also was building a $1.6 million home for himself in Bois D’Arc. Mid-Missouri Bank agreed to provide a $1.6 million construction loan to build the residence; $1.15 million was used to pay off the previous bank which had financed the construction of the residence up to that point, and the remaining $450,000 was supposed to have gone to completing the construction of the residence. When persons worked on the house, Ussery was supposed to obtain an invoice and a lien waiver from the contractors and submit these documents to Mid-Missouri Bank, which would then make a disbursement of the amount owed to Ussery’s personal bank account.
A dozen invoices and lien waivers totaling $315,417 were submitted to Mid-Missouri Bank from May 29 to June 25, 2007, purportedly from persons or companies building the residence, to draw money from the $1.6 million loan amount for construction of the residence. In fact, each invoice and lien waiver was false, faked or forged. They were either created by, or caused to be submitted by, Ussery, and contained materially false or fraudulent, representations. The companies or persons who were indicated on the fraudulent invoices and lien waivers did not prepare or submit the invoices and lien waivers, did not perform the work on the property as indicated in the invoices, did not agree to waive any lien on the residence for work actually done on the property, and did not receive any payments for work done as indicated in the invoices.
Auditors at the bank visited the construction site in June and July of 2007 and saw nothing that would indicate that this amount had been spent on the construction of the residence, apart from the hanging of drywall. Mid-Missouri Bank actually deposited $315,417 into the defendant’s personal account based upon the fraudulent representations contained in the lien waiver and invoice documents. It appears that the money, which had been meant for building the house, was used instead for business relating to USS Properties or Villa Properties.
Ussery eventually stopped construction on the Bois D’Arc property and the bank had to foreclose on the loan. The bank took a $782,349 loss after the sale of the property with its partially finished house. Ussery filed for bankruptcy relief in 2011.
Although not charged in the indictment, evidence introduced during the trial indicated that Ussery also committed similar fraudulent activity against a husband and wife who hired him to build a personal residence in Greene County, Mo. Ussery started construction of the house in 2007, but did not complete the project. The victim clients discovered that Ussery was providing false lien waivers to Great Southern Bank to obtain loan draws from the construction loan.
Evidence introduced during the trial also indicated that Ussery or his company submitted false lien waivers to obtain construction loan draws in 2005 from First Midwest Bank in Jackson, Mo., which would also be considered relevant conduct that was not charged in the indictment.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for about four hours and fifteen minutes before returning the guilty verdict on Friday night to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Oct. 26, 2015.
Under federal statutes, Ussery is subject to a sentence of up to 30 years in federal prison without parole for each count of bank fraud, plus a fine and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, the U.S. Secret Service and the Springfield, Mo., Police Department.
Jonesboro Woman Sentenced for Lying and Buying Firearm used to kill Omaha, Nebraska Police OfficerRead the Press Release
ATLANTA - Jalita Jenera Johnson has been sentenced for lying when she bought a gun and 50-round drum magazine for her convicted felon boyfriend, Marcus Wheeler. Wheeler later used the gun and magazine to kill an Omaha, Nebraska, police officer while the officer was attempting to serve a warrant on Wheeler for his arrest.
“The tragic result in this case is a stark reminder of how firearm purchasing laws are designed to protect the public,” said U.S. Attorney John Horn. “Ms. Johnson’s case shows that if you buy a gun for someone else and lie about it, you never know where that gun will end up or what it will be used for. Illegally bought guns not only pose a risk to our community, but any other community where the gun is ultimately taken.”
“This sentence serves as a reminder to all law enforcement that we need to remain vigilant in curtailing the illegal trafficking of firearms in order to protect the safety of innocent civilians,” said ATF Special Agent in Charge Carl Walker.
According to U.S. Attorney Horn, the charges and other information presented in court: In April 2015, Jalita Jenera Johnson bought a Glock semiautomatic firearm, a 50‑round drum magazine, and ammunition from a pawnshop in Jonesboro, Georgia. When Johnson bought the firearm, she was required to fill out a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473. That form requires the purchaser of the firearm to disclose the identity of the true buyer or transferee of the firearm. Johnson stated on the form that she was the true buyer. But in fact, Johnson was buying the firearm for her boyfriend, Marcus Wheeler, who was a convicted felon and so could not buy the gun for himself. Wheeler provided Johnson with the money to buy the gun and magazine. He also directed Johnson on which gun and magazine to buy.
In May 2015, using the gun and magazine that Johnson bought for him, Wheeler got into an armed confrontation with the City of Omaha Police Department in Omaha, Nebraska, during which Wheeler used the Glock firearm to shoot and kill an Omaha Police Officer. Wheeler also was killed during the shootout.
Jalita Jenera Johnson, 26, of Jonesboro, Georgia, has been sentenced to one year of probation, 40 hours of community service, and 180 days’ home confinement. Johnson was convicted on these charges on August 19, 2015, after she pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Mary L. Webb prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Inmate Sentenced to 30 Days in Prison for Possessing PhoneRead the Press Release
JOHNSTOWN, Pa. – Ivan Hernandez pleaded guilty and was sentenced in federal court to 30 days in prison with no supervised release to follow, on his conviction of possession of contraband in prison while an inmate at the Moshannon Valley Correctional Center, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Ivan Hernandez, 33.
According to information presented to the Court, on July 30, 2013, Hernandez possessed a phone, which is a prohibited object under prison regulations.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Office of the Inspector General of the United States Department of Justice for the investigation leading to the successful prosecution of Hernandez.
Guilty Plea of Sequoia Forest Marijuana CultivatorRead the Press Release
FRESNO, Calif. —Uriel Silva-Garcia (Silva), 24, of Turicato, Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana and possessing firearms in furtherance of a large-scale cultivation operation located near Little Poso Creek in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced.
According to court documents, Silva was paid to plant and tend about 8,596 marijuana plants on public land. To facilitate the cultivation activities, Silva possessed a loaded rifle and handgun. The cultivation caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Pesticides, including malathion, fertilizer, water lines, trash, clothing and camping equipment were scattered throughout the site. Silva has agreed to reimburse the U.S. Forest Service for the cleanup costs.
Co-defendant Antonio Garcia-Villa, 46, pleaded guilty on October 26, 2015. Both defendants are scheduled to be sentenced on January 19, 2016, by Senior U.S. District Judge Anthony W. Ishii. They face a maximum statutory penalty of 20 years in prison and a $1 million fine for the drug conspiracy and a mandatory minimum consecutive term of five years in prison for the firearm charge. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables. They also face deportation to Mexico upon completion of any prison term imposed.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Goldsboro Man Sentenced to 120 Months for Drug and Firearm ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge W. Earl Britt sentenced SHAWNTANNA LEMARUS THOMPSON, 27, of Goldsboro, to 120 months imprisonment followed by 3 years of supervised release. On August 3, 2015, THOMPSON pleaded guilty to possession with intent to distribute a quantity of marijuana and to felon in possession of a firearm charges.
On August 8, 2014, a Goldsboro Police Officer responded to a call about a subject who was waving a gun in the air. Upon his arrival, the officer observed THOMPSON, who matched the subject’s description. Upon seeing the officer, THOMPSON quickly stood up and walked away. With his back to the officer, THOMPSON reached into his waistband and retrieved a revolver which he threw into nearby bushes. The officer located the revolver which was a loaded Smith & Wesson, .38 special revolver. The officer also recovered 11 grams of marijuana and 98 small baggies from THOMPSON’S person. Once at the jail facility, additional marijuana was located on THOMPSON.
On October 17, 2014, a Goldsboro Police Officer responded to a disturbance call in Goldsboro. As the officer approached the scene, he heard multiple gunshots and observed THOMPSON standing with his hand behind his back. As the officer passed, THOMPSON moved his hands to the front of his body and the officer noticed the butt of a handgun in THOMPSON’S hand. The officer exited his vehicle and ordered THOMPSON to stop and to show his hands. THOMPSON fled from the officer. The officer searched the path where THOMPSON was running and found a loaded Radom P35 9mm handgun which had the serial number scratched off.
Investigation of this case was conducted by the Goldsboro Police Department and by the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Former attorney in Van Wert accused of stealing hundreds of thousands of dollars from clientsRead the Press Release
A former attorney from Van Wert was charged with one count of mail fraud for allegedly stealing hundreds of thousands of dollars from his clients, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Charles Allan Runser, 72, advised clients on wills, estates and trusts, served as executor of clients' estates and served as guardians for clients, according to the criminal information.
Runser illegally obtained hundreds of thousands of dollars from clients in this capacity, by writing checks to himself, falsifying his law firm's accounting system to create phantom accounts, withdrawing client funds for personal use, selling client securities to enrich himself, misrepresenting the amount of assets in trusts to probate court, and other actions, according to the information
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigations, Lima Resident Agency. The case is being prosecuted by Assistant United States Attorneys Noah P. Hood and Gene Crawford.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Telemarketing Manager Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge John Antoon, II has sentenced Tammie Lynn Cline (33, Leominster, MA) to two years and six months in federal prison for her role in the operation of a boiler room. She also was ordered to pay more than $1.2 million in restitution to her victims. Cline pleaded guilty on July 17, 2015.
According to court documents, Cline and her codefendant, Mark Gardner (28, Osteen, FL), operated a boiler room in Central Florida. Along with the telemarketers who worked at their call center, they would make unsolicited calls to owners of timeshare properties located throughout the United States. During those calls, they claimed that they worked for Universal Timeshare Sales Associates (UTSA) out of Beaverton, Oregon, that UTSA had a purchaser who was interested in buying a timeshare, and that the timeshare owner just needed to pay a fee between $1,600 and $2,200 for the sale to proceed.
In order to convince timeshare owners to pay the fee, Gardner, Cline, and their telemarketers would sometimes claim that an interested purchaser was present in the showroom ready to buy a timeshare, that a buyer had already deposited money into an escrow account for the sale, or that the sale would take place in about 90 days. Those representations were false. The timeshares were not sold as had been promised, and members of the conspiracy would deny or ignore requests for refunds, and would dispute chargebacks with the credit card companies.
In total, victims lost more than $1.2 million due to operation of the telemarketing call center.
In May 2013, the Federal Trade Commission and the Florida Attorney General’s Office filed a civil action against Gardner, Cline, and others in federal court. In June 2014, the district court entered a permanent injunction against them related to certain telemarketing practices.
Gardner previously pleaded guilty to conspiracy to commit mail fraud and wire fraud and money laundering. His sentencing hearing is scheduled for December 3, 2015.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Sergeant with Los Angeles Sheriff's Department Sentenced to Eight Years in Prison in Civil Rights Case Stemming from Beating of Jail VisitorRead the Press Release
A former sergeant with the Los Angeles Sheriff’s Department (LASD), who was previously found guilty of federal civil rights offenses related to the beating of a handcuffed visitor to the Men’s Central Jail, was sentenced today to 96 months in federal prison.
Eric Gonzalez, 46, received the eight-year sentence from U.S. District Judge George H. King of the Central District of California, who immediately remanded the defendant into custody.
Judge King said that Gonzalez “abused his authority and corrupted the very system he was sworn to uphold.”
Gonzalez, who was a 12-year veteran of LASD at the time of the offense, was one of three former deputies who were found guilty in June of civil rights charges.
At the trial, a jury determined Gonzalez, along with former LASD Deputies Fernando Luviano and Sussie Ayala, violated the civil rights of the victim in 2011 when they beat the man and caused bodily injury. The jury also determined that all three defendants had falsified records when they prepared reports claiming that the victim was not handcuffed during the incident. Gonzalez and Ayala were each additionally convicted of conspiring to violate the victim’s civil rights by using unreasonable force.
Two other defendants who were named in a federal grand jury indictment in late 2013, Pantamitr Zunggeemoge and Noel Womack, previously pleaded guilty.
“Today’s lengthy prison sentence demonstrates that individuals who abuse their positions of trust as law enforcement officers will be held accountable,” said U.S. Attorney Eileen M. Decker of the Central District of California. “The former deputy sheriffs who participated in the scheme to violate the civil rights of a handcuffed man who was beaten without cause cast a stain on the entire sheriff’s department, where virtually all of the deputies serve admirably.”
Gonzalez was the leader of the conspiracy to violate the victim’s civil rights, according to a sentencing memo filed by prosecutors: “While [the victim] may have suffered the bruises and cuts, the negative impact of defendant Gonzalez’s actions does not end with [the victim], nor is [he] the only victim. The actions undertaken by the defendants in this case have impacted the public trust and thus extend beyond [the victim] and his family.”
“Mr. Gonzalez's actions cast a pall on his department and dishonored the badge he wore for many years,” said Assistant Director in Charge David Bowdich of the FBI's Los Angeles Field Office. “We must be vigilant when it comes to abuse-of-power allegations, and prosecute them when warranted. However, we should also recognize and respect those who wear the badge with pride and serve Los Angeles County honorably.”
The evidence presented at trial showed that the victim and his girlfriend went to the jail to visit the woman’s incarcerated brother on Feb. 26, 2011. Both visitors were in the possession of cell phones, which are prohibited under jail rules. When the phones were discovered, the victim was handcuffed and brought into an employee break room, where prosecutors said he was subject to a “savage beating” and sprayed with a burning agent similar to pepper spray. The victim was later transferred to the hospital by paramedics.
Following the incident, Gonzalez instructed Zunggeemoge to write a report that falsely described how the victim swung his left elbow and struck Zunggeemoge, which prompted the use of force. Subsequent reports by other defendants also falsely described how the victim attempted to escape from the break room.
“Instead of using his position to educate and advance a new generation of law enforcement officers that would make the LASD proud, [Gonzalez] used this to frustrate the goals of true law enforcement,” according to the government’s sentencing memo. “As is clear from the pre-sentence report, to this day he has accepted no responsibility and seems to argue that he was ‘right.’”
During today’s sentencing hearing, Judge King said that when law enforcement officers “think they are above the law, the entire rule of law is threatened.”
Ayala and Luviano are scheduled to be sentenced by Judge King on Nov. 30. Ayala faces a face a statutory maximum sentence of 40 years in federal prison and Luviano faces up to 30 years.
Last month, a federal grand jury indicted a sixth deputy in relation to the incident at the visiting center. Former Deputy Byron Dredd pleaded not guilty on Friday, Oct. 30, to conspiracy to violate civil rights and two counts of making false reports, and he was ordered to stand trial on Dec. 22.
The case against Gonzalez and the other deputies is the result of an investigation by the FBI and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 15 current or former members of the LASD have now been convicted of federal charges.
Former Sergeant with L.A. Sheriff’s Dept. Sentenced to 8 Years in Prison in Civil Rights Case Stemming from Beating of Jail VisitorRead the Press Release
LOS ANGELES – A former sergeant with the Los Angeles Sheriff’s Department, who was found guilty this summer of federal civil rights offenses related to the beating of a handcuffed visitor to the Men’s Central Jail, was sentenced today to 96 months in federal prison.
Eric Gonzalez, 46, received the eight-year sentence from United States District Judge George H. King, who immediately remanded the defendant into custody.
Judge King said Gonzalez “abused his authority and corrupted the very system he was sworn to uphold.”
Gonzalez, who was a 12-year veteran of LASD at the time of the offense, was one of three former deputies who were found guilty in June of civil rights charges.
At the trial, a jury determined Gonzalez, along with former LASD Deputies Fernando Luviano and Sussie Ayala, violated the civil rights of the victim in 2011 when they beat the man and caused bodily injury. The jury also determined that all three defendants falsified records when they prepared reports claiming that the victim was not handcuffed during the incident. Gonzalez Ayala were additionally convicted of conspiring to violate the victim’s civil rights by using unreasonable force.
Two other defendants who were named in a federal grand jury indictment in late 2013 – Pantamitr Zunggeemoge and Noel Womack – previously pleaded guilty.
“Today’s lengthy prison sentence demonstrates that individuals who abuse their positions of trust as law enforcement officers will be held accountable,” said United States Attorney Eileen M. Decker. “The former deputy sheriffs who participated in the scheme to violate the civil rights of a handcuffed man who was beaten without cause cast a stain on the entire Sheriff’s Department, where virtually all of the deputies serve admirably.”
Gonzalez was the leader of the conspiracy to violate the victim’s civil rights, according to a sentencing memo filed by prosecutors. “While [the victim] may have suffered the bruises and cuts, the negative impact of defendant Gonzalez’s actions does not end with [the victim], nor is [he] the only victim. The actions undertaken by the defendants in this case have impacted the public trust and thus extend beyond [the victim] and his family,” prosecutors wrote.
“Mr. Gonzalez's actions cast a pall on his department and dishonored the badge he wore for many years,” said David Bowdich, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “We must be vigilant when it comes to abuse-of-power allegations, and prosecute them when warranted. However, we should also recognize and respect those who wear the badge with pride and serve Los Angeles County honorably.”
The evidence presented at trial showed that the victim and his girlfriend went to the jail to visit the woman’s incarcerated brother on February 26, 2011. Both visitors were in the possession of cell phones, which are prohibited under jail rules. When the phones were discovered, the victim was handcuffed and brought into an employee break room, where prosecutors said he was subject to a “savage beating” and sprayed with a burning agent similar to pepper spray. The victim was later transferred to the hospital by paramedics.
Following the incident, Gonzalez instructed Zunggeemoge how to write a report that falsely described how the victim swung his left elbow and struck Zunggeemoge, which prompted the use of force. Subsequent reports by other defendants also falsely described how the victim attempted to escape from the break room.
“Instead of using his position to educate and advance a new generation of law enforcement officers that would make the LASD proud, [Gonzalez] used this to frustrate the goals of true law-enforcement,” according to the government’s sentencing memo. “As is clear from the pre-sentence report, to this day he has accepted no responsibility and seems to argue that he was ‘right.’”
During today’s sentencing hearing, Judge King said that when law enforcement officers “think they are above the law, the entire rule of law is threatened.”
Ayala and Luviano are scheduled to be sentenced by Judge King on November 30. Ayala faces a face a statutory maximum sentence of 40 years in federal prison, and Luviano faces up to 30 years.
Last month, a federal grand jury indicted a sixth deputy in relation to the incident at the Visiting Center. Former Deputy Byron Dredd pleaded not guilty on Friday to conspiracy to violate civil rights and two counts of making false reports, and he was ordered to stand trial on December 22.
The case against Gonzalez and the other deputies is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 15 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
Former President of Maryland Lawn and Garden Supply Company Pleads Guilty to Diverting more than $187,000 in Company FundsRead the Press Release
Baltimore, Maryland – Malcomb C. Cork, age 55, of South Carolina, pleaded guilty today to causing more than $187,000 to be diverted from his employer’s bank account.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to his plea agreement, from 2004 until mid-2012, Cork was the President of a Maryland company that distributed lawn and garden supplies. Under the terms of his contract with the company, Cork also was permitted to operate a business he established called Medical Solutions, Inc. (MSI). MSI executed a licensing agreement with Chemence LLC, a company that manufactured and distributed products, including a medical grade adhesive. Under the agreement, MSI was required to pay Chemence $187,500 by July 1, 2011. On that date, Cork wrote a check to Chemence for $187,500 drawn on his investment account, which was returned due to insufficient funds.
Cork admitted that on July 15, 2011, he directed subordinates to transfer $187,500 from the lawn and garden supply company’s operating account to an account in the name of Chemence LLC. When the Chief Financial Officer (CFO) for the company, who was on vacation at the time of the funds transfer, returned and asked about the expenditure, Cork told the CFO that the funds were transferred to a trade show vendor with which the company was doing business. Cork advised the CFO that he would obtain an invoice in support of the money transfer. Despite repeated requests from the CFO, Cork never supplied an invoice to support the charge. Eventually the company discovered that the payment was unrelated to its business and attempted – unsuccessfully – to recover the money. Cork admitted that he knew he was not authorized to direct the funds transfer, but did so anyway for his own benefit.
Cork and the government have agreed that if the Court accepts the plea agreement Cork will be sentenced to no more than 15 months in prison. Chief U.S. District Judge Catherine C. Blake has scheduled his sentencing for February 29, 2016, at 9:00 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys P. Michael Cunningham and Aaron S. J. Zelinsky, who are prosecuting the case.
Former Insurance Company Service Rep Pleads Guilty to Embezzlement ChargeRead the Press Release
TOPEKA, KAN. – A former insurance company service representative in Topeka pleaded guilty Monday to an embezzlement charge, U.S. Attorney Barry Grissom said.
Erin Rebecca Thomas, 47, formerly of Topeka, Kan., pleaded guilty to one count of embezzlement. In her plea she admitted the crime took place while she worked for American Home Life Insurance Company.
In her position, she processed death claims, policy loans, beneficiary changes and so on. Between July 2010 to July 2012, she created 22 separate fraudulent transactions for a total loss to the insurance company of $214,000. In one instance, she processed the policy of a person who died in 2010. She created a fictitious change of beneficiary request naming herself as beneficiary and had the benefit check deposited in her personal account.
Sentencing is set for Feb. 1, 2016. She faces a maximum penalty of 10 years in federal prison. Grissom commended the U.S. Secret Service and U.S. Assistant Attorney Christine Kenney for their work on the case.
Federal Criminal Complaint Charges Crosby County Man in Extortion SchemeRead the Press Release
LUBBOCK, Texas — Shannon Dale Smith of Crosbyton, Texas, appeared this afternoon in federal court, before U.S. Magistrate Judge Nancy M. Koenig, on a federal criminal complaint stemming from his attempt to extort more than $500,000 from a Crosby County man, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith, 46, has been in custody since his arrest late Thursday evening, October 29, 2015. Judge Koenig will set a detention hearing at a later date, should one become necessary.
According to the affidavit filed with the complaint, on Tuesday morning, October 27, 2015, Crosbyton resident, Nathan Boardman, received a telephone message on his answering machine that said in a muffled voice: “We are watching you, there is a note on the north door.”
Boardman found the note that stated: “Follow these Instructions and no one will get Hurt. We Have a man watching your daughter. We Have a man watching your Grand daughter. We Have a man watching you and your wife. We are monitoring [sic] your home and cell phone. If you call the police, we will know and someone will be taken from you. If you choose not to participate, someone will be taken from you. You have till Thursday at 9pm to put $525,000 in cash and or gold coins in a bag, duffel style. we [sic] will call you with further instructions. We are watching you. Do what you’re told and no one will be Hurt”.
On the morning of October 29, Boardman received another threatening phone call in which an unknown male stated they had 14 hours to get the money. That evening, the unknown male called and left a message advising they’d better answer or if they didn’t, it would be the last thing they would do.
At approximately 8:00 p.m. that evening, the unknown male caller provided instructions to drop the extortion money. Approximately one hour later, law enforcement staged a delivery of the extortion money at the location indicated. Soon after the drop, a vehicle was observed in the vicinity, and two individuals were observed on foot. Law enforcement immediately confronted the two men, Shannon Dale Smith and a juvenile male, and detained them. At the time of his arrest, Smith had a semi-automatic pistol on his person.
A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum statutory penalty for the offense as charged is 20 years in federal prison and a $250,000 fine.
The FBI, Texas Rangers, and Texas Department of Public Safety, Criminal Investigations Division are investigating. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Detroit man pleads guilty in Federal court to possession of heroinRead the Press Release
HUNTINGTON, W.Va. – A Detroit man found in possession of heroin in April 2015 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Cordell Lopasker McCarrall, Jr., 21, pleaded guilty in federal court in Huntington, West Virginia, to possession with intent to distribute heroin.
On April 2, 2015, agents with the DEA Task Force executed a search warrant at a residence located at 2017 9th Avenue, Apartment 1, in Huntington. When agents executed the warrant, McCarrall ran from the residence and was quickly apprehended. During a search of the residence, agents located approximately 90 grams of heroin, $6,700 in cash, paraphernalia used in the distribution of heroin, and a magnetic concealment box commonly used to transport heroin. McCarrall admitted at his plea hearing that he possessed the heroin that agents seized in the search, and intended to sell it. McCarrall also admitted that he conspired with others to distribute heroin from November 2014 to April 2015 and that he was responsible for the distribution of up to 700 grams of heroin.
McCarrall faces up to 20 years in federal prison, and is schedule to be sentenced on February 1, 2016.
The United States Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Detroit drug dealer sentenced to six years and eight months in Federal prisonRead the Press Release
HUNTINGTON, W.Va. – A Detroit man found with heroin and oxycodone pills in Huntington in 2013 was sentenced today to six years and eight months in federal prison, announced U.S. Attorney Booth Goodwin. David Darrell Walker, 37, previously pleaded guilty in federal court in Huntington, West Virginia, to possession with intent to distribute heroin.
On August 8, 2013, members of the Huntington FBI Drug Task Force executed a search warrant at 1301 15th Street in Huntington. Officers found Walker in the residence and seized approximately 35 grams of heroin, 42 oxycodone pills and two guns. Walker admitted as part of his guilty plea that he intended to distribute the heroin and pills from the residence.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation with assistance from the Ohio Highway Patrol. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Deming Man Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Robert Steven Elliott, II, 32, of Deming, N.M., made his initial appearance this morning in federal court in Las Cruces, N.M., on a criminal complaint charging him with production and possession of visual depictions of minors engaged in sexually explicit conduct. Elliott remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for later this week.
The criminal complaint alleges that Elliott produced and possessed child pornography on or about Oct. 30, 2015, in Luna County, N.M. The investigation into Elliott began on Oct. 30, 2015, when a woman contacted law enforcement authorities to report that she discovered multiple photographs which she believed to be consistent with child pornography on a cellphone. The woman represented that the cellphone belonged to Elliott and surrendered the cellphone to the authorities.
Thereafter, law enforcement obtained a federal search warrant for the cellphone. The cellphone was found to contain multiple images of child pornography, including images of a child under the age of 12.
The penalty upon conviction on each of the production of child pornography charges is a mandatory minimum of 15 years and a maximum of 40 years in federal prison. The penalty upon conviction on the possession charge is a mandatory minimum of ten years and a maximum of 20 years in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Deming and Las Cruces offices of Homeland Security Investigations, the Luna County Sheriff’s Office, the El Paso Police Department, and the New Mexico Internet Crimes Against Children (ICAC) Task Force. Individuals with information about this matter are asked to contact Homeland Security Investigations at 575-525-7400.
Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Defendant Sentenced to Serve 30 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
FORT WORTH, Texas — A defendant who pleaded guilty this summer to an indictment charging one count of distribution of methamphetamine, was sentenced on Friday by U.S. District Judge John McBryde to 360 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Jose Milton Puentes, 34, was arrested in May 2015 in the Los Angeles area on the indictment filed in the Northern District of Texas. He made his initial appearance in federal court in Los Angeles and was released on bond. After he entered his guilty plea in U.S. District Court in Fort Worth on July 17, 2015, Judge McBryde remanded him into federal custody.
According to documents filed in the case, on April 4, 2013, Puentes shipped, or caused to be shipped, approximately one pound of methamphetamine from California to Fort Worth via UPS. The methamphetamine arrived the following day, and the Drug Enforcement Administration (DEA) intercepted it.
The DEA investigated the case, and Assistant U.S. Attorney Shawn Smith prosecuted it.
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Clarence Physician Pleads Guilty to Distributing Controlled SubstancesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Matthew Bennett, 49, of Clarence, NY, who was convicted of unlawfully distributing and dispensing oxycodone, a controlled substance, was sentenced to 36 months in prison by U.S. District Judge Richard J. Arcara. The defendant has also surrendered his medical license and forfeited $19,000 in United States currency.“Through his greed, this defendant betrayed not only his profession but those patients who put their trust in him,” said U.S. Attorney Hochul. “While the vast majority of physicians act with care, our Office will not hesitate to bring to justice those whose irresponsible actions can have deadly consequences, particularly with opiate overdoses being one of the leading causes of death in our region and country.”
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on seven occasions between May and July 2012, Bennett issued prescriptions for controlled substances to undercover law enforcement officers without a proper medical examination and outside the norms of professional medical treatment. In addition, on several occasions, Bennett gave prescriptions to the undercover officers in exchange for items such as paper products and a gas grill.
Some of the prescriptions were written at the defendant’s office at 624 River Road in North Tonawanda but physical examinations were never performed. Other prescriptions were dispensed at Bennett’s home on Hunting Valley Road in Clarence.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, the Niagara County Drug Task Force, under the direction of Sheriff James Voutour, the Amherst Police Department, under the direction of Chief John Askey, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Lancaster Police Department, under the direction of Chief Gerald Gill, the West Seneca Police Department, under the direction of Chief Daniel Denz, and the New York State Attorney Generals Medicaid Fraud Control Unit, under the direction of Chief Upstate Investigator Upstate William Falk.
Christopher Cook Appears in Federal Court on Indictment Charging a Violation of the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Cook, 37, of Albuquerque, N.M., made his initial appearance in federal court this morning on an indictment charging him with violating the federal firearms laws, announced U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of ATF, Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD), Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and New Mexico State Police Chief Pete N. Kassetas.
U.S. Attorney Martinez said that Cook is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution based on their prior criminal convictions with the goal of removing them from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders with significant criminal conviction records from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Cook initially was charged with being a felon in possession of a firearm in a criminal complaint filed by ATF on Jan. 6, 2015. The criminal complaint alleged that Cook unlawfully possessed a firearm and ammunition on Jan. 3, 2015, when Cook shot an APD officer during a traffic stop in Bernalillo County, N.M. On March 10, 2015, Cook was indicted on that same charge. According to court records, Cook was prohibited from possessing either firearms or ammunition on Jan. 3, 2015, because he previously has been convicted of at least eleven felony offenses, including two involving attempted aggravated assaults on peace officers.
Cook was in state custody on related state charges from his arrest on Jan. 3, 2015, and until he was transferred to federal custody to face the charges in the federal indictment. Cook has entered a guilty plea to the state charges and is awaiting sentencing in state court
If convicted of the federal charge, Cook faces up to ten years in federal prison. If the court determines that Cook is an armed career criminal, Cook faces an enhanced sentence of a mandatory minimum of 15 years in prison to a maximum of life imprisonment. Charges in criminal complaints and indictments are mere accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department, the U.S. Marshals Service, the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico State Police with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
Chesapeake man pleads guilty in Federal court to distributing heroinRead the Press Release
HUNTINGTON, W.Va. – A Chesapeake, Ohio, man who conspired with others to distribute heroin in 2014 and 2015 pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Alan R. Nolan, 35, pleaded guilty in federal court in Huntington, West Virginia, to distributing heroin.
On March 3, 2015, a confidential informant working at the direction of the Drug Enforcement Administration contacted Roger Lee Black to arrange the purchase of heroin. Black and Nolan met the informant in a parking lot of a car dealership near Hal Greer Boulevard in Huntington, where Nolan distributed approximately 10 grams of heroin to the informant in exchange for $1,200. As part of his plea, Nolan admitted that he conspired with Black and others to distribute heroin from November 2014 to April 2015. Nolan also admitted that he was responsible for the distribution of up to 700 grams of heroin.
Nolan faces up to 20 years in federal prison, and is schedule to be sentenced on February 1, 2016. Black, a co-defendant in this case, who pleaded guilty in federal court last week to distribution of heroin, also faces up to 20 years in federal prison, and is scheduled to be sentenced on January 25, 2016.
The United States Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Christopher Gorzynski, 26, of Buffalo, NY, who was convicted of obtaining and possessing a controlled substance by fraud, was sentenced to 24 months probation by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that on October 3, 2013, the defendant, while working with the Drug Enforcement Administration, purchased prescription narcotics from a co-defendant who was working as a nurse in a local health care facility. After making the purchase, Gorzynski handed over a quantity of hydrocodone tablets to DEA agents stating that was the total purchase. Agents then searched the defendant and discovered 11 fentanyl patches hidden in Gorzynski’s shorts and in the sole of his shoes.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Office, the Lackawanna Police Department, under the direction of Chief James Michel, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Brooklyn Man Sentenced in Manhattan Federal Court to 15 Months in Prison for Participating in Scheme to Defraud Elderly Victims Across New York StateRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALLAH JUSTICE MCQUEEN OF Brooklyn, New York, was sentenced today by U.S. District Court Judge Shira A. Scheindlin to 15 months in prison. MCQUEEN pled guilty on July 6, 2015, to one count of conspiracy to commit wire fraud and one count of wire fraud in connection with his participation in a scheme that targeted and victimized elderly people across New York.
According to the Complaint, Superseding Indictment, and plea proceeding:
In or about August and September 2013, MCQUEEN and his co-conspirators perpetrated a scheme to defraud elderly victims around the United States by tricking them into believing their grandchildren had been imprisoned and needed immediate bail money. In particular, in each case, a member of the conspiracy contacted the victim by phone, purported to be a law enforcement official or attorney, and falsely claimed that the victim’s grandchild had been taken into custody for a narcotics offense and would not be released unless the victim paid thousands of dollars, and in some cases tens of thousands of dollars, in purported bail money. A member of the conspiracy also frequently posed on the call as the victim’s grandchild, typically crying and pleading with the elderly victim to send money to secure the grandchild’s release from jail, and asking the victim not to contact any other family members because the grandchild felt ashamed. In each case, in extreme distress, the victim sent thousands of dollars, at a minimum, as instructed, to certain individuals who, among other things, provided that money to MCQUEEN at his direction. In each case, after paying the “bail” money as directed, the victim directly contacted his or her grandchild and thereupon learned that the grandchild had not, in fact, been arrested, that the grandchild knew nothing about the claims made on the call to the victim, and that the call was fraudulent.
For example, a 79-year-old victim in New York received a phone call in August 2013 from an individual who identified himself as a police sergeant and claimed that the victim’s grandson had been arrested after drugs were discovered in a car in which the grandson was a passenger. The purported sergeant said the grandson would be released if the victim sent $6,000 in bail money as directed. The victim, who briefly heard, on the phone, an individual who sounded like the victim’s grandson, wired the money as directed. The victim subsequently spoke directly with the victim’s grandson, and learned that he had not been arrested, and knew nothing about the purported sergeant or the basis for his request for bail money. The victim never received any money back from the purported sergeant.
In fact, the victim’s money was wired to particular individuals working with and at the direction of MCQUEEN who collected the wired funds on MCQUEEN’s behalf and provided the money to MCQUEEN and his co-conspirators. As to a portion of the victim’s money, MCQUEEN appeared personally at a particular location in Brooklyn to arrange for the collection of the proceeds. MCQUEEN subsequently deposited another portion of the money sent by the victim directly into his personal bank account.
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MCQUEEN, 34, of Brooklyn, New York, was convicted of one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349 and one count of wire fraud, in violation of 18 U.S.C. § 1343. In addition to the 15-month prison term, MCQUEEN was sentenced by Judge Scheindlin to three years of supervised release, and ordered to pay restitution to the victims, a $200 special assessment, and forfeiture.
Mr. Bharara praised the outstanding investigative work of the FBI. Mr. Bharara also thanked the Bronx County District Attorney’s Office for its assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Elisha Kobre is in charge of the prosecution.
Bristol, Virginia Man Sentenced to 60-Months ImprisonmentRead the Press Release
ABINGDON, VIRGINIA – A Bristol, Va. man who failed to update his sex offender registration, after resisting arrest and fleeing from police officers in August 2014, was sentenced on Friday in the United States District Court for the Western District of Virginia in Abingdon.
Stevenson G. Harrison, Jr., 34, of Bristol, Va., previously pled guilty to a one count indictment of failing to register and update his registration as required by the Sex Offender Registration and Notification Act [SORNA]. In District Court on Friday, Harrison was sentenced to 60 months of federal incarceration and 10 years of supervised release thereafter. Harrison will also be required to register as a sex offender following his release from imprisonment.
In August 2014, three officers with the Bristol, Virginia Police Department approached Harrison at a state probation office to arrest him on outstanding felony arrest warrants. Harrison resisted arrest and fled, causing two of the officers to suffer minor injuries. While a fugitive, Harrison did not update his sex offender registration as required under SORNA. In November 2014, the United States Marshals Service apprehended Harrison in Lakeland, Florida, where Harrison had assumed a false name. Harrison had been required to register under SORNA because of three 1996 convictions he received in Washington County, Virginia for aggravated sexual assault of a minor.
The investigation of the case was conducted by the United States Marshals Service, the Virginia State Police, and the Bristol, Virginia Police Department. Special Assistant United States Attorney Kevin L. Jayne prosecuted the case for the United States.
Attorney Sentenced for Defrauding Clients and InvestorsRead the Press Release
Assistant U.S. Attorney W. Mark Conover (619) 546-6763
NEWS RELEASE SUMMARY – November 2, 2015
SAN DIEGO – San Diego attorney Todd Macaluso, whose practice included representing plaintiffs in personal injury lawsuits, was sentenced today to five months in prison and ordered to pay $150,000 in restitution and a $100,000 fine for engaging in a scheme to defraud clients and investors.
Macaluso, who pleaded guilty in March, has admitted that he entered into funding agreements with investors that put his clients’ personal injury cases up as collateral without their knowledge or consent, and that he forged the signatures of his clients and used forged notary stamps and signatures in order to convince potential investors to advance him millions of dollars.
According to court records, Macaluso funded his personal injury law practice by entering into these funding agreements with various investors. Under these agreements, investors advanced Macaluso money in exchange for the right to collect a portion of his clients’ recoveries in the future. Although clients had to consent to the collateralization of their lawsuits in order for these transfers to be valid, Macaluso concealed these arrangements from many of his clients and forged their signatures on the financing documents. To conceal his scheme, Macaluso also forged the signatures and stamps of notary publics who purportedly witnessed the executions of these legal documents, but who (like his client) had no knowledge of the arrangements.
Because these funding agreements provided for extremely high rates of return, and the repayment schedules adjusted upward every six months, some agreements eventually required Macaluso to repay investors 200% of the original investment. These extreme rates of return gave Macaluso a strong incentive to settle his clients’ personal injury cases quickly. But Macaluso concealed from several clients this added pressure on him to secure a settlement before the next rate adjustment.
“Macaluso’s clients were stabbed in the back by the lawyer who was supposed to have their back,” said U.S. Attorney Laura Duffy. “Today there is a modicum of justice for them.”
FBI Special Agent in Charge Eric S. Birnbaum said, “Today's sentencing holds Mr. Macaluso accountable for violating his fiduciary responsibilities and betraying his clients' trust. The FBI is committed to maintaining the integrity of our justice system and will aggressively pursue those who act unethically and unlawfully at the expense of the American public.”
Macaluso was sentenced by U.S. District Court Judge Roger T. Benitez.
DEFENDANT Case Number: 15cr0948-BEN
TODD E. MACALUSO Age: 53 Rancho Santa Fe, California
SUMMARY OF CHARGE
Title 18, United States Code, Section 1343 - Wire Fraud. Maximum penalties: 20 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.
AGENCY
Federal Bureau of Investigation
Arlington Man Sentenced to 15 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — An Arlington, Texas, man, Steven Lass, 33, was sentenced today by U.S. District Judge David C. Godbey to 15 years in federal prison following his guilty plea in April 2015 to one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in August 2014, an officer with the Midlothian Police Department conducted a traffic stop in Midlothian on a vehicle driven by Steven Lass. The officer noticed that Lass’s front passenger seat was missing. Several tools and electronic devices were found where the seat would be have been located; Lass indicated that the tools and devices were his.
Lass consented to a search of his vehicle. Two iPods that were found were searched, and several images of child pornography were located. A subsequent forensic analysis of the seized material by FBI special agents revealed more than 650 images of child pornography on Lass’s iPods and 1559 images of child pornography on a thumb drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Midlothian Police Department investigated. Assistant U.S. Attorneys Camille Sparks and Lori Walker prosecuted.
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Anchorage Man Pleads Guilty to Firearms OffenseRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Adam Michael Cornelison, 26, resident of Anchorage, Alaska, pleaded guilty on Thursday, October 29, 2015, to possession of a firearm in furtherance of a drug trafficking offense in violation of 18 U.S.C. § 924(c).
According to the plea agreement filed in the case, on the evening of November 8, 2014, Cornelison went to Fashion Nails nail salon on Muldoon Road in Anchorage, Alaska, to meet with co-defendant Toa Danh “Tony” Ly. Also present at the meeting were co-defendants Robert Rast and Rennie Marie Davis. The defendant was inside the studio with Ly, Rast, and Davis for approximately 45 minutes.
After the meeting, the police followed Cornelison’s vehicle as he drove away from the nail salon. When police attempted to stop Cornelison, he fled, leading police for several miles through Anchorage. At the end of the pursuit, Cornelison attempted to evade police by driving in the wrong direction and up onto the sidewalk. He was ultimately forced to a stop after an Anchorage police officer drove her car into the front of Cornelison’s vehicle, pinning his car between the police cruiser and a retaining wall.
Located in the rear passenger seat of Cornelison’s car was approximately one pound of marijuana. Also located in the vehicle under the front passenger seat was a Glock .40 caliber handgun that had been previously stolen.
This case was the product of an investigation by the Anchorage Federal Bureau of Investigation’s Safe Streets Task Force. Assistant U.S. Attorney Kyle Reardon is prosecuting the case. The Anchorage FBI Safe Streets Task Force (SSTF) is currently tasked with identifying and targeting for prosecution the most egregious violent offenders as well as criminal enterprise groups responsible for drug trafficking, money laundering, alien smuggling, crimes of violence such as murder and aggravated assault, robbery, and violent street gangs acts, as well as to intensely focus on the apprehension of dangerous repeat violent offenders. The Anchorage SSTF full-time participants include the Federal Bureau of Investigation (FBI), Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Coast Guard Investigative Services (CGIS), and the U.S. Postal Inspection Service (USPIS) who were all active participants in the case matter. In addition, the SSTF initiative is employed throughout Alaska with participants from the Kodiak Police Department, Kenai Police Department, Juneau Police Department, and Ketchikan Police Department.
Alaska Man Sentenced to 70 Months in Federal Prison on Cocaine ConvictionRead the Press Release
WICHITA FALLS, Texas — Kelly Breon Kea of Alaska, was sentenced this week by U.S. District Judge Reed C. O’Connor to 70 months in federal prison following his guilty plea in June 2015 to one count of possession with intent to distribute 500 grams or more of cocaine, announced U.S. Attorney John Parker of the Northern District of Texas.
Kea, 55, has been in federal custody since his pre-trial release was revoked early last month.
According to documents filed in the case, on September 14, 2014, a Texas Department of Public Safety (DPS) trooper stopped Kea for a traffic violation on US-287 in Wichita Falls. Inside of the trunk of the car were several suitcases, and one of the suitcases contained two hard, brick-like items in its lining.
The trooper removed the items and saw they were two plastic-wrapped and taped bundles, and he suspected they contained compressed cocaine. In fact, the Texas DPS laboratory later confirmed that the substance was cocaine, equaling 2014.83 net grams.
Texas DPS investigated. Assistant U.S. Attorney Mary Walters prosecuted.
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30 October 2015
Wyoming Man Sentenced for Assaulting a Federal OfficerRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on October 28, 2015, Justin Hayes, 40, was sentenced in federal magistrate court to 104 days imprisonment on one count of assaulting, resisting, opposing, and interfering with a federal officer, in connection with an incident in which he blew blood into the face of a Bureau of Indian Affairs, Wind River Police Department Officer while the officer was attempting to get Hayes into a jail cell. Following imprisonment, Hayes will serve one year of supervised probation during which time he was ordered to attend recommended alcohol treatment and pay restitution in the amount of $285 among other terms and conditions. Hayes was also ordered to pay a $25 special assessment.
This case was investigated by the Federal Bureau of Investigation.
Wyoming Man Convicted of Sexual Exploitation of a Child, Attempted Coercion and Enticement, Incest, and Abusive Sexual ContactRead the Press Release
U.S. Attorney Christopher A. Crofts announced today that Laramie resident Timothy Michael Wells has been convicted in federal court. A jury found Wells guilty of sexual exploitation of a child, attempted coercion and enticement, incest, and abusive sexual contact after a three-day jury trial in the United States District Court in Cheyenne. Wells is scheduled to be sentenced by Federal District Court Judge Alan B. Johnson on January 12, 2016.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Wyoming Internet Crimes Against Children Task Force, and was prosecuted by Assistant U.S. Attorneys Thomas A. Szott and James C. Anderson.
Worcester Semi-Pro Football Player Sentenced for Tax Refund Fraud SchemeRead the Press Release
BOSTON – A member of the Worcester Wildcats semi-professional football team was sentenced today in U.S. District Court in Worcester for his role in carrying out a stolen identity refund fraud scheme that resulted in an almost $1 million loss to the federal government.
Jose Manuel Abreu-Elicier, 24, was sentenced by U.S. District Judge Timothy S. Hillman to 12 months and a day in prison, 24 months of supervised release, and $993,158.43 in restitution. In June 2015, Abreu-Elicier pleaded guilty to one count of conspiracy to convert public money.
Between November 2011 and November 2012, Abreu-Elicier and other co-conspirators fraudulently obtained and cashed federal income tax refund checks issued in the names of unsuspecting identity theft victims. These checks were issued based on fraudulent federal income tax filings submitted to the IRS using the names, social security numbers, and other stolen personal information of victims. In order to cash the checks, Abreu-Elicier worked with Cynthia Mansfield, the manager of a Worcester-area bank, who, in exchange for a fee, cashed the checks, falsified bank records, and concealed the existence of the fraud. Over the course of the entire scheme, Abreu-Elicier and his co-conspirators cashed 138 fraudulently obtained U.S. Treasury checks worth $993,158.
This case was investigated and prosecuted as part of Operation Point Break, a three-year, multi-agency federal law enforcement initiative aimed at combatting stolen identity refund fraud across the country.
“Stolen identity refund fraud has become pervasive in the United States,” said United States Attorney Carmen M. Ortiz. “Not only does it damage the integrity of our tax system and defraud the government, but it also endangers the security of individuals’ personal information.”
"The sentence imposed today should serve as a clear warning – those who steal the IDs of innocent taxpayers and then cheat the Federal Government will pay a heavy price when they are caught," said Special Agent in Charge William Offord of IRS Criminal Investigation. “IRS will continue to enforce our nation’s tax laws and pursue criminals who prey on innocent victims through identity theft.”
Mansfield was charged separately for her role in the conspiracy, and sentenced in April 2015 to five years of probation, 11 months of which must be served in a residential re-entry center, and ordered to pay full restitution.
U.S. Attorney Ortiz and IRS-CI SAC Offord made the announcement today. The case was prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Wholesale Synthetic Drug Distributor Convicted of Drug and Money Laundering ConspiraciesRead the Press Release
A man who wholesale distributed synthetic drugs commonly known as “K2” and “bath salts” was convicted by a jury after a 3-day trial in federal court in Cedar Rapids.
Muhammad Anwar, age 49, from West Des Moines, Iowa, was convicted of conspiring to distribute controlled substances and conspiring to launder drug money. The verdict was returned yesterday afternoon following approximately 8 hours of jury deliberations.
Evidence at trial showed that Anwar served as a wholesale distributor of the illegal substances and that, for a period nearly two years, members of the conspiracy were purchasing between $100,000 and $1,000,000 per month from the illegal products’ manufacturers. The products involved in the conspiracy were sold across Iowa, including to stores in Waterloo, Cambridge, Cedar Rapids, and Des Moines.
The K2 products contained two synthetic cannabinoids, XLR-11 and AB-FUBINACA, with effects similar to THC, the main psychoactive ingredient in marijuana, but they were marketed as potpourri or incense. The products were also given highly suggestible trade names, such as “Mr. Nice Guy,” “Mr. Happy,” “Mind Trip,” “Diablo,” “Scooby Snax,” “Hydro,” “Lol,” and “777.” The bath salt products included pentedrone, a synthetic cathinone, which is a stimulant similar to methamphetamine or cocaine. The bath salts were marketed as having cleaning properties but were sold in small jars containing less than half a gram of powder.
Sentencing before United States District Court Chief Judge John A. Jarvey will be set after a presentence report is prepared. Anwar was taken into custody by the United States Marshal after the verdicts were read and will remain in custody pending sentencing. He faces a possible maximum sentence of 40 years’ imprisonment, $1,500,000 in fines, $200 in special assessments, and a lifetime of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Internal Revenue Service – Criminal Investigation; the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff’s Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; the Tri-County Drug Enforcement Task Force; the Federal Bureau of Investigation; the Department of Homeland Security; the Iowa Division of Criminal Investigation, Intelligence Division, the Des Moines Police Department; the Story County Sheriff’s Department; and was prosecuted by Assistant United States Attorneys Dan Chatham and Jacob Schunk.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR-15-2005-JAJ.
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White Earth Man Sentenced to 27 Years in Prison for MurderRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of CHARLES JAMES JONES, 50, to 27 years in prison. JONES was convicted by a jury on March 10, 2015, after a seven-day trial, of burning his girlfriend alive while she was unconscious. JONES was sentenced today in U.S. District Court in St. Paul by U.S. District Judge Susan Richard Nelson.
As proven at trial, in December 2013, JONES and his girlfriend, Shalonda Clark, were huddled in the living room of their home in Ponsford, Minn., trying to stay warm from the heat of the oven. Clark became unconscious and laid immobile on a couch in the living room. At that time, JONES took a blanket, lit it on fire, and threw it on top of Shalonda Clark’s defenseless body.
As proven at trial, Shalonda Clark never regained consciousness to escape the blaze. JONES however, fled the burning house to another house across the road. Though his neighbors, who could clearly see the burning house across the road, asked JONES where Shalonda Clark was, he told them that he did not know. Nonetheless, the neighbors went to the defendant’s home to look for Shalonda Clark. JONES did not help them, nor did he tell them where in the house she could be found. Clark’s charred remains were later recovered from among the ashes of the couch.
This case was the result of an investigation conducted by the Becker County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, the FBI and the White Earth Police Department.
This case was prosecuted by Assistant U.S. Attorneys Kevin S. Ueland and Julie E. Allyn of the Major Crimes Section of the U.S. Attorney’s Office.
Defendant Information:
CHARLES JAMES JONES, 50
Ponsford, Minn.
Convicted:
- Murder in the Second Degree, 1 count
Sentenced:
-
27 years in prison
-
Five years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
West African Man Charged with Fraudulently Obtaining $12 Million from the Global Fund to Fight AIDS, Tuberculosis and Malaria and the United States Agency for International DevelopmentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced the unsealing today of an indictment charging MALAMINE OUEDRAOGO, a citizen of Burkina Faso, with wire fraud in connection with a scheme to distribute ineffective malaria nets treated with little or no insecticide instead of the World Health Organization-certified nets treated with the proper quantity of insecticide that OUEDRAOGO had promised to supply to the West African country of Burkina Faso. The malaria nets in question were to be distributed as part of an anti-malaria campaign by the Global Fund to Fight AIDS, Tuberculosis and Malaria (“Global Fund”), funding for which was provided, in part, by the United States Agency for International Development (“USAID”). Because the counterfeit malaria nets that OUEDRAOGO obtained without the knowledge or permission of the Global Fund were significantly less expensive than the certified malaria nets OUEDRAOGO had agreed to purchase and supply, OUEDRAOGO defrauded the Global Fund and USAID out of more than $12 million. OUEDRAOGO remains at large.
According to allegations contained the Indictment[1]:
USAID is an independent federal agency that provides loans, grants, and technical assistance to assist countries with, among other things, global health issues. The Global Fund is an international financing organization based in Geneva, Switzerland, that disburses resources to prevent and treat HIV and AIDS, tuberculosis, and malaria. The Global Fund regularly receives substantial funding from USAID. The Programme D’Appui Au Développement Sanitaire (“PADS”), or Program for Health Development, is an entity within the Ministry of Health of Burkina Faso that receives and distributes funds contributed by donor countries and other organizations for health-related causes within the West African country of Burkina Faso. Among these health-related causes is the prevention and treatment of malaria, which is a leading cause of morbidity and mortality in Burkina Faso.
Malaria is a mosquito-borne infectious disease. The risk of malaria can be reduced by preventing mosquito bites through, among other things, the use of mosquito nets. Mosquito nets are nets, constructed from polyester or other material, with mesh fine enough to exclude insects without unacceptably impeding visibility or the flow of air.
Mosquito nets are substantially more effective in preventing malaria if treated with an appropriate insecticide. Nets not treated with insecticide are less effective because they fail to repel or kill mosquitos and can develop small holes over time through which mosquitos can penetrate. Untreated nets therefore pose a higher risk of exposure to mosquitos, and an increased health risk for people using them. Mosquito nets treated with insecticide, also known as long-lasting insecticidal mosquito nets, or LLINs, are substantially more costly to produce than untreated mosquito nets.
The World Health Organization (“WHO”) is a specialized agency of the United Nations that is concerned with international public health. The World Health Organization Pesticide Evaluation Scheme (“WHOPES”) is a program within the WHO that promotes and coordinates the testing and evaluation of pesticides for public health. WHOPES also conducts testing and review of long-lasting insecticidal mosquito nets (“LLINs”) used for the prevention of malaria, and issues recommendations of particular LLINs that meet certain criteria and requirements set forth by the WHO.
Because of the importance of LLINs in preventing the spread of malaria, WHOPES conducts and coordinates extensive evaluation and testing of mosquito nets to ensure that the nets are as effective as possible in preventing the spread of malaria. After evaluation and testing, WHOPES issues recommendations of particular mosquito nets found to be effective in preventing the spread of malaria. As a result, Global Fund and USAID only fund the purchase of LLINs that are recommended by, and conform to the standards of, WHOPES.
MALAMINE OUEDRAOGO, a citizen of Burkina Faso, obtained more than $12 million in funding from the Global Fund (provided to him via PADS) to purchase, and provide to the people of Burkina Faso, more than 2 million WHOPES-certified mosquito nets made by a particular WHOPES-recommended manufacturer in Thailand (the “WHOPES-Recommended Manufacturer”) and appropriately treated with long-term insecticides. Contrary to the express, written promises that OUEDRAOGO made in securing that funding, however, nearly all of the mosquito nets he purchased and provided to the people of Burkina Faso were counterfeit, not manufactured by the WHOPES-Recommended Manufacturer, not certified by WHOPES, and not properly treated with insecticide.
Instead of purchasing WHOPES-recommended mosquito nets from the WHOPES-Recommended Manufacturer, as he had promised to do, OUEDRAOGO purchased counterfeit nets that were manufactured by a non-WHOPES-recommended manufacturer in China (the “Chinese Manufacturer”), but were fraudulently labeled and packaged to look like the nets produced by the WHOPES-Recommended Manufacturer. The nets OUEDAROGO purchased and then distributed in Burkina Faso contained little or no insecticide.
OUEDRAOGO purchased the counterfeit mosquito nets from the Chinese Manufacturer for a small fraction of the price OUEDRAOGO knew it would have cost to purchase properly treated nets that satisfied WHOPES standards. As a result, OUEDRAOGO fraudulently obtained over $12 million in illegal profits from the Global Fund and USAID.
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OUEDRAOGO, 33, of Burkina Faso, is charged with one count of wire fraud. He faces a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the USAID Office of the Inspector General. Mr. Bharara also thanked the Global Fund for its assistance in the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Elisha Kobre is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Wayne County Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
LONDON — A Wayne County man, previously convicted of producing child pornography, has been sentenced to 30 years in federal prison.
On Thursday, U.S. District Judge Gregory F. Van Tatehnove sentenced 31 year-old Brandon Lynn Jones. Under federal law, Jones must serve at least 85 percent of his sentence. And, upon his release from prison, Jones must immediately register as a sex offender and will be under the supervision of the U.S. Probation Office for the rest of his life.
According to court documents, in 2014, Jones produced and distributed photographs depicting his sexual abuse of a minor, under the age of twelve.
Jones’s conviction is the result of an undercover investigation conducted by the Federal Bureau of Investigation’s Child Exploitation Task Force, Washington, D.C. Field Division.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, FBI Louisville; and, Assistant Director in Charge, Paul M. Abbate, FBI Washington, D.C., jointly announced the sentence.
Assistant U.S. Attorney Adam Reeves prosecuted the case on behalf of the federal government.
Virginia Woman Sentenced to 10 Years for Catoosa Teachers Federal Credit Union RobberyRead the Press Release
ROME, Ga. - Pelaralyss Young has been sentenced to 10 years in federal prison for her role in the December 20, 2012, robbery of the Catoosa Teachers Federal Credit Union, in Ringgold, Georgia. Young’s co-conspirator, Laron Burns, was sentenced in the Eastern District of Michigan to 18 years in federal prison.
“Young and Burns targeted a small town credit union at a time when they thought it would be most vulnerable—the Christmas season,” said U.S. Attorney John Horn. “Armed with air pistols, they jumped a teller counter, broke a teller’s leg, and forced employees and customers into the vault, where they were held for the remainder of the robbery. We hope the resolution of this case will help restore the victims and citizens of Ringgold to feeling safe, and will deter anyone else from this senseless violence.”
“This was a very violent robbery and the two defendants in the matter are most deserving of the extensive federal prison sentences handed down. While the customer and bank employees turned victims are left to deal with their emotional or even physical trauma, the FBI and its law enforcement partners working this matter hope that these stiff prison sentences provide some solace toward their continued recovery,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: On December 20, 2012, Pelaralyss Young and Laron Burns, armed with realistic-looking air pistols, and wearing dark clothing, masks, and gloves, entered the Catoosa Teachers Federal Credit Union, in Ringgold, Georgia. Burns jumped over a teller counter and knocked a female bank employee to the ground, breaking her leg in the process. She was then forced to crawl at gun point into a room containing the bank’s safe. Other employees and customers were also forced at gun point into that room, where they were held for the remainder of the robbery.
The robbery occurred immediately after a cash delivery, and the defendants fled with nearly $170,000. They also seized and fled with the cell phones of customers in order to prevent any attempts to alert police.
Pelaralyss Young, 27, of Alexandria, Virginia, was sentenced on October 30, 2015, by U.S. District Judge Harold L. Murphy, Northern District of Georgia, to 10 years in prison, to be followed by five years of supervised release. Young was convicted on these charges on August 13, 2015, after she pleaded guilty without a plea agreement.
Laron Burns, 45, of Flint, Michigan, was sentenced on April 13, 2015, by U.S. District Judge Laurie Michelson, Eastern District of Michigan, to 18 years, 3 months in prison, to be followed by three years of supervised release. Burns was convicted on these charges on December 17, 2014, after he pleaded guilty pursuant to a negotiated plea agreement that also resolved additional criminal conduct committed in Michigan.
Both defendants have also been ordered to pay $166,340 in victim restitution.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, the Catoosa County Sheriff's Office, and the Ringgold Police Department.
Assistant United States Attorney John S. Ghose prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Undocumented Alien from Mexico Charged with Illegal Use of Social Security Number and False Claim of CitizenshipRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SERGIO GALVEZ-VELAZQUEZ, age 40, a citizen of Mexico, was charged today in a two-count Indictment with illegal use of a Social Security Number and false claim of citizenship to obtain employment.
According to the Indictment, GALVEZ-VELAZQUEZ illegally obtained a Louisiana Identification Card from the Louisiana DMV office in Houma by using a Social Security number that did not belong to him. GALVEZ-VELAZQUEZ was also charged with falsely claiming that he was a citizen of the United States on an I-9 employment form in order to gain employment with Bollinger Shipyards in Lockport, Louisiana.
If convicted, GALVEZ-VELAZQUEZ faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
U.S. Attorney Alicia A.G. Limtiaco Receives Distinguished Alumni Award at UCLARead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was recognized as the “2015 Alumnus of the Year” by the Asian Pacific Island Law Students Association (APILSA) and the Asian Pacific American Law Journal (APALJ) at the University of California at Los Angeles (UCLA) on April 25, 2015. U.S. Attorney Limtiaco is the first Pacific Islander to receive the award; she is a graduate of the UCLA School of Law Class of 1990.
APILSA was founded over 30 years ago and consistent with its mission and commitment to serve as a valuable resource and support network for law students to succeed academically, socially, politically, and professionally, APILSA has supported and advocated important fundamental causes as evidenced by its years of community service, accomplishments, and meaningful contributions to causes related to diversity, civil rights, human rights and human dignity, cultural preservation and cultural competency, education, health, and international goodwill and understanding.
U.S. Attorney Limtiaco commended the hard working and dedicated APILSA members for their invaluable service, for their vision in advocating and promoting these fundamental causes, and for serving as role models for students and the community.
In her address at the awards banquet, U.S. Attorney Limtiaco stated, “… In law school and like today's APILSA, we – the APILSA generations of the past, through our unified voices, pursued and advocated for the achievement of equality and freedom for human kind, and racial, social and economic justice. We were also able through APILSA's support, to make a difference and contribute to the recruitment and consideration process of Asian and Pacific Islander law school applicants. … We too must remind ourselves that our nation is a nation that promotes diversity, equality and respect for human rights and human dignity. We must continue then to draw strength from our diversity as a nation, as it is our diversity as a people and the strength that we gain from it that contributes to our resiliency as a nation during our most challenging times.”
U.S. Attorney Alicia Limtiaco, James Park, Professor of Law, UCLA School of Law, Rachel Moran, Dean and Michael J. Connell
Professor of Law, UCLA School of Law
Yisha Fan and Dat Phan, 2014-2015 APILSA Co-Chairs, U.S.
Attorney Alicia Limtiaco, Rachel Moran, Dean and Michael J.
Connell Professor of Law, UCLA School of LawTony Torrez Charged with Violating Federal Narcotics Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Tony Torrez, 31, of Albuquerque, N.M., has been charged with violating the federal narcotics trafficking and firearms laws in a criminal complaint filed by the DEA this afternoon. Torrez, who is currently in state custody on unrelated charges, will be transferred to federal custody to answer to the charges in the criminal complaint.
The criminal complaint charges Torrez with possession of marijuana with intent to distribute and using and carrying firearms in relation to drug trafficking crimes. Torrez allegedly committed the offenses on Oct. 21 and 22, 2015, in Bernalillo County, N.M.
According to the criminal complaint, the investigation resulting in the federal charges against Torrez began on Oct. 21, 2015, began when the Albuquerque Police Department (APD) received a tip about a suspect who allegedly shot and killed a child during a road rage incident and his place of residence. That day APD conducted surveillance at the residence where they observed a man, subsequently identified as Torrez, load items into a Toyota sedan. APD officers later conducted a traffic stop on the Toyota when a woman drove away from the residence in the Toyota. Shortly thereafter, APD officers conducted a traffic stop on a Lexus sedan that drove away from the residence and identified the driver as Torrez. APD sealed and towed the two vehicles to the APD Crime Lab.
The criminal complaint alleges that later on Oct. 21, 2015, APD obtained and executed a state search warrant at the residence where they located shoe boxes containing U.S. currency, paraphernalia and other items consistent with the use of marijuana, marijuana, and a substance believed to be “wax,” a concentrated form of THC oil processed from the marijuana plant. Thereafter, the DEA obtained a federal search for the residence and seized items and paraphernalia allegedly used for the distribution of marijuana and in the manufacture of THC “wax” and oil. DEA agents also seized the U.S. currency as well as documents and items allegedly confirming that Torrez resided at the residence.
On Oct. 22, 2015, DEA agents were present when state search warrants were executed on the Lexus and Toyota sedans. The Lexus allegedly contained a bag containing U.S. currency and a small amount of marijuana. The Toyota allegedly contained bags containing bulk marijuana and marijuana packaged for distribution, two revolvers, two assault rifles, ammunition, a bullet proof vest, a small amount of suspected cocaine, and drug paraphernalia. The criminal complaint alleges that the U.S. currency seized from the residence and the Toyota totaled approximately $64,000.00.
If convicted on the marijuana trafficking charge, Torrez faces a statutory maximum penalty of five years in federal prison. If convicted on the firearms charge, he faces a mandatory minimum of five years in prison which must be served consecutive to the sentence imposed on the marijuana charge. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA, APD and the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case.
Three Individuals Indicted for Nationwide Computer-Aided Fraud Scheme Involving Almost $2 Million in Counterfeit Checks and over 400 Stolen IdentitiesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned a superseding indictment in an ongoing investigation into a nationwide scheme involving millions in counterfeit checks and hundreds of stolen identities.
Specifically, the indictment charges WALTER GLENN, age 38, of Hartford, Connecticut, LARRY WALKER, age 39, of Orlando, Florida and THOMAS JAMES, age 55, of Union, South Carolina, with conspiracy to make and pass counterfeit checks, production of false identification documents use unauthorized access devices access device fraud, and aggravated identity theft. If convicted, the defendants face significant prison terms, fines, restitution orders, and forfeiture orders.
According to the Indictment, GLENN, WALKER and JAMES used fake IDs and social security numbers belonging to others in over 800 transactions in several states as part of their scheme to cash almost $2,000,000 in counterfeit checks. The alleged fraudulent scheme resulted in approximately $1,218,000 in losses to a large national retailer. According to the indictment, the scheme was facilitated through the use of computers.
The Indictment alleges that, in order to execute their fraudulent scheme, GLENN, WALKER, and JAMES manufactured counterfeit checks from stolen account numbers, and then used the personal identifiable information of over 400 victims to make fake IDs which enabled them to cash the counterfeit checks that they had produced.
U.S. Attorney Green stated: “The theft and use of stolen identities and monetary devices is becoming a worldwide epidemic, particularly in the United States. Cyber technology is allowing fraud schemes to blossom by providing criminals, both domestically and overseas, with the tools and information to make each scheme bigger and better than the last. The role of federal prosecutors and investigators to address this threat is critical. Cyber criminals are not untouchable and we will devote the resources necessary to aggressively pursue these criminals and take the fight to them and any others seeking to defraud our communities.”
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the United States Secret Service, and the West Baton Rouge Parish Sheriff’s Office. This matter is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
NOTE: An indictment is an accusation by the Grand Jury. A defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Suitland Felon Exiled to Almost 11 Years in Prison for Gun and Drug ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced David Chris Simms, age 39, of Suitland, Maryland, today to 130 months in prison, followed by five years of supervised release, for possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to Simms’ plea agreement, on September 19, 2014, members of the Prince George’s County Police Department executed a search warrant at Simms’ residence. During the search, officers recovered a .40 caliber, and a 9 mm handgun, each loaded with a 31 round extended magazine; two additional magazines loaded with .40 caliber and 9 mm ammunition; and an open box of 9mm ammunition. In addition, law enforcement recovered at least 28 grams of crack cocaine, approximately 1.4 kilograms of marijuana, $8,900 in cash, and heat sealer bags. The guns and drugs were all found in Simms’ bedroom. Officers also recovered $1,064 from Simms on the same day. The cash seized from Simms and from his bedroom was proceeds of his drug trafficking business.
Simms had a previous felony conviction and was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Daniel C. Gardner, who prosecuted the case.